Steemit Crypto Academy Season 5 Beginners' course - Task 5: Bitcoin, Cryptocurrencies, Public chains.

This is the Task 5of the Crypto Academy Beginners course I am thrilled to take part in this task by @stream4u This is where the fun is and with this lesson, we are learning more about the Public chains Let's get into it

What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?

What Is Cryptocurrency?

The word Crypto was originated from the Greek word Krypto’s which meant “hidden”. The cryptocurrency in simple terms can be defined as virtual money it doesn’t have any physical form like usual currencies we see. The concept of this currency is linked back with the electronic cash or ecash system in 1983 by David. However, it wasn’t the same cryptosystem we have now. The present cryptocurrency came out after passing through many developmental stages and finally in the year 2009 the first cryptocurrency was created by a man named Santoshi. It is called a cryptocurrency because of uses a cryptography technique to secure transactions. The first cryptocurrency developed was Bitcoin which was developed using SHA-256 cryptographic mechanism in proof of work consensus algorithm.

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What differs cryptocurrency from our traditional money is its control of it. Unlike our traditional banking system, the cryptocurrency has no centralized authority keeping an eye or acting as in charge of this currency system.

The cryptocurrency uses blockchain technology, a decentralized system or technique that can spread through computers that manage the transactions and secure the transaction through advanced encryption techniques. As I said there’s no central management behind this digital currency hence it is stored in digital wallets. It is the job of blockchain technology to prevent double-spending or any other fraud possible hence eliminating the need for third parties.

The cryptocurrency is now gradually earning acceptance in the current world and has started being used as the payment method in exchange for goods at different market places or even some of the brands have their native tokens which they accept as payments. According to current data on coinmarketcap, there are a total of 13000 crypto assets being traded among traders. Some of the most preferred coins at a time are BTC, ETH, USDT, ADA, etc.

Let us go through some pros and cons of this currency

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PROS

• Since it’s an entire digital concept hence can be used to trade worldwide no borders restrictions are faced by investors.

• This brings transparency in transactions as they are available to the public eye, unlike traditional banking where a user is not aware where his money is being used.

• The transaction speed is a lot quicker than the transaction with the presence of central management.

• Since markets are volatile which can help traders to yield heavy profits with a small investment.

CONS

• As I said above markets are volatile it can be because of loss too.

• One of the major factors which is a hindrance to its global acceptance is the danger of illegal activities being carried out through cryptocurrency as there’s no government in charge of it.

• If there’s any loss one cannot claim anyone for refund or insurance as there’s no governing authority hence investing here involves too much risk.

How You Would Like To See Cryptocurrency In The Future?

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Currently, there are 100+ countries where cryptocurrency is accepted, and still many countries are looking forward to legalizing this currency system, In short, cryptocurrency is being widely accepted in the world and its growing popularity and acceptance at a large level shows they are going to last for a long time and who knows forever.

I see cryptocurrency as a solution for economic problems being faced worldwide and can help in increasing economic growth by initiating economic activities. There’s no long process or requirement for entering into cryptos such as age, qualification, or any other criteria hence with only good knowledge one can participate in this currency system and can reduce the unemployment ratio and do wonders for the underdeveloped country since anyone with a phone can have access to this.

I have heard some experts quoting that cryptocurrency payments are future currency system as it is supposed to replace the paper currency with time as the cryptocurrency transaction take place at low cost with a quicker speed because paper currency requires a lot of expenses to generate paper money however major flaw of cryptocurrency is the market being volatile you can be holding an asset worth $100 today but it can fall to $5 tomorrow hence it cannot be accepted entirely as some permanent currency system as I lack in providing confidence to individual. Hence I want to see crypto as a source of payment method but only when users can rely on this currency in simple words I see an improved version of cryptocurrency as the future currency system of the world.

Conclusion

Cryptocurrency has gained immense popularity with time and the popularity is still skyrocketing. These are digital assets which for now in some markets are accepted as payments when you make purchases online however for physical purchasing or selling the crypto payments are not yet accepted.

The crypto markets are volatile one must have proper guidance of this currency system before stepping into trading i.e. what he should be cautious of before trading. The favorite thing about this system is that you’re just one account away from being a part of this system. Lastly, I’d like to thank the professor for putting effort into the lecture and assigning us this interesting yet easy task.